Browsing by Author "Kapar, Burcu"
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Item Effect of Qatar diplomatic and economic isolation on Qatar stock market volatility: an event study approach(Routledge, 2020) Kapar, Burcu; Buigut, StevenIn this study we assess the impact of the political and economic blockade of Qatar, as well as four other events related to the blockade on Qatar’s stock market volatility. One of these events occurred before the June 5 2017 blockade while the others occurred after. We use volatility event-study approach to test the abnormal unsystematic volatility in stock returns. We reveal that stock market volatility has reacted significantly to the blockade as well as to other related events that happened before and after the blockade. Our findings highlight the importance of continuing, and even bolstering, the ongoing mediation efforts to reduce the risk of a resurgence of hostilities. As there is no resolution yet, there is still a risk of future market volatility and thus changes in portfolio allocation and investment decisions not only in Qatar but also in the GCC. © 2020, © 2020 Informa UK Limited, trading as Taylor & Francis Group.Item Effect of regional terrorism events on Malaysian tourism demand(SAGE Publications Inc., 2022-07) Buigut, Steven; Kapar, Burcu; Braendle, UdoThe study analyzes the impact of terrorism on Malaysia’s tourism demand. Panel data from the 25 top source countries, covering the period from 2000Q4 to 2017Q4 is obtained from the Global Terrorism Database, and the Malaysian Tourism Board (MyTourismData). For analysis, a panel Fully Modified OLS (FMOLS) procedure is employed. The results indicate that an increase in terrorism activity in Malaysia depresses international arrivals to the country. Furthermore, spillover effects from terrorism activity in neighboring South East Asian countries are identified. Increased terrorism activity in Thailand is found to boost tourist arrivals in Malaysia from each of the four source continents (Europe, North America, Oceania, and Asia) as well as overall. However, increased terrorism activity in Indonesia depresses arrivals from each of the four source continents as well as overall, possibly due to closer physical and cultural proximity. Increase in terrorism activity in Philippines generally creates a negative effect on Malaysia tourism arrivals except for fatalities which induces a positive effect from North America and Oceania. It is suggested Malaysia should coordinate counter terrorism strategies with Indonesia and Philippines to reduce negative spillover. Malaysia tourism providers should also emphasize differentiation of Malaysia tourism products from Indonesian and Philippine products. Future research should assess how terrorism attack patterns affect tourism demand across different nationalities. © The Author(s) 2021.Item Global evidence on early effects of COVID-19 on stock markets(John Wiley and Sons Inc, 2022-10) Kapar, Burcu; Buigut, Steven; Rana, FaisalWe use event study approach to assess the effects of the early stages of COVID-19 on global markets. A large sample of stock markets (63) covering all key global markets and regions is included. The findings indicate that the Wuhan lockdown induces negative spillover effects on markets in Europe, North America, and other global markets that have yet to introduce domestic restrictions and have minimal infections at the time. Increasing cases outside China particularly in Europe and the introduction of containment measures result in severe market decline. Our findings highlight the need for quick, globally coordinated response to contagious diseases. © 2021 University of New Orleans.Item How did Brexit impact EU trade? Evidence from real data(John Wiley and Sons Inc, 2023-06) Buigut, Steven; Kapar, BurcuAt the time it voted to exit in 2016, the UK was a leading economy within the EU. It contributed about 16 percent of the EU GDP, while the other EU countries accounted for almost half of UK's total trade. This study attempts to answer two research questions: First, how Brexit affected the EU–UK trade and second, how it affected the trade between remaining 27 EU members. To answer these questions, quarterly data are exploited for the period from 2005Q1 to 2022Q3 covering a total of 53 trading partners including the EU members. A gravity model that controls for unobserved bilateral heterogeneity and multilateral resistance is estimated by PPML. Three phases of Brexit (the referendum, transition, and post transition [under the TCA]) are analysed. The results indicate that the Brexit referendum phase depressed UK–EU trade by around 10.5%, and transition phase by around 15%. In both cases, particularly for the transition phase, the effect is greater on the UK imports from EU than the UK exports to EU. We do not find a significant effect due to the post transition (TCA) phase. Estimates show some mild but positive effect on intra-EU trade of about 1.5% and 4.6% due to Brexit referendum and post Brexit respectively, but no significant effect from the transition phase. This suggests that some EU trade with the UK was redirected to other EU members. Hence UK should aggressively seek out new trade agreements with other countries and trade blocs as well as refine the workings of the trade and cooperation agreement signed with the EU to minimise the loss. © 2023 The Authors. The World Economy published by John Wiley & Sons Ltd.Item Winners and losers from Pfizer and Biontech's vaccine announcement: Evidence from S&P 500 (Sub)sector indices(Public Library of Science, 2022-10) Kapar, Burcu; Buigut, Steven; Rana, FaisalThis study explores how the US stock market reacted to the news of a successful development of vaccine by Pfizer and Biontech on November 9, 2020. In particular, the study analyses the effect of the vaccine announcement on 11 sector indices and 79 subsector indices. A key contribution of the present study is to provide a deeper subsector level of analysis lacking in existing literature. An event study approach is applied in identifying abnormal returns due to the November 9th vaccine announcement. Several event periods (-1, 0, 1, 2, 3, 0-1, 0-3) are analysed to provide a more complete picture of the effects. Based on analysis, it is established that there are considerable inter and intra sectoral variations in the impact of the vaccine news. The results show that the impact follows a clear pattern. The sectors that were hit hardest by the pandemic such as energy, financials, as well as subsectors like hotels and casinos, benefited the most from positive vaccine news. Subsectors that gained from the pandemic such as airfreight, household appliances and computers and electronics retail were depressed the most by the news. These findings suggest that while the availability of vaccines is expected to help steer economies gradually to normalcy, the re-adjustment is likely to be asymmetric across subsectors. While some subsectors expect to expand as these industries recover from the contraction inflicted by the COVID-19 environment, other subsectors expect adjustment losses as these industries shed off the above average gains driven by the COVID-19 environment. © 2022 Kapar et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.